This paper will take a look into the relationships, impacts and dependencies that a PMO has on an Enterprise Business Architecture. Learn how important it is to understand Enterprise Business Architecture and how the structure is intertwined with a Program Management Office.
1. Enhancing the
PMO
Partnership
Achieve Business Results with Business
Architecture
Business architecture is the essence of how an Enterprise works. It is the
many components which make up an enterprise that produce the goods and
services which are sold for profit. PMO’s provide multi-faceted benefits to
Enterprise business architecture which demonstrate value. This paper will
touch on a few segments of business architecture and discuss which areas to
embrace or avoid.
Sherry S. Remington, PMP, SCPM 11/6/2011
2. 1
Each Enterprise is unique and diverse and to try to categorize and align them is a mish
mosh at best. However, there are some processes, systems and data which can be affinity
grouped into rational relationships allowing PMO’s to be aligned and utilized. Below is an
excerpt from Chapter 2 of the The PMOSIG Program Management Office Handbook: Strategic
and Tactical Insights for Improving Results1 which indicates different types of PMO’s.
PMO’s are like gloves they have to fit for them to be effective. And their design must reflect
their purpose. Garden gloves are not used in batting cages, nor are racing gloves used to
clean the kitchen sink. First define the PMO, will it be portfolio, program or project; then
understands their purpose: regulatory, standards, centers of excellence, product, project,
etc. Once appropriately defined, then vision, mission and purpose can be more successfully
aligned. One specific requirement of PMO leadership is to promote the vision of the PMO
and advertise the delivery of value to the organization.1
PMO Types
Project: A temporary endeavor undertaken to create a unique product, service or
result.Project Management Office aligns to execution as that is what they are designed to
do, bring vision and strategy to reality. They deliver the results.
Program: A group of related projects managed in a coordinated way to obtain benefits and
control not available from managing them individually. Programs Management Offices may
include elements of related work outside of the scope of the discrete projects in the
program.Program Management Offices align to strategy and execution as they guide the
organizations to execute against the Enterprise strategy via projects and operational teams
performing against the corporate processes.
Portfolio: A collection of projects or programs and other work grouped together to
facilitate effective management of that work to meet strategic business objectives. The
projects or programs of the portfolio may not necessarily be interdependent or directly
related.Portfolio Management Office best align with vision and strategy as they govern
what goes into an Enterprise portfolio. Programs and project are selected based on their
criteria which best aligns them to the Vision and Strategy of the Company.
Business Architecture
Business Architecture is systems by which the Enterprise manages it resources weather
that is people, process, systems or data. Products are a result of the business architecture
success. How the business architecture is integrated and utilized will determine product
and Enterprise success.
Sherry S. Remington, PMP, SCPM 11/6/2011
3. 2
People and the PMO
As a program management office,
people responsibilities are directly Knowledge workers
linked to the Enterprise structure.
Project workers
Is the organization a highly
matrixed organization, a weak Education and
matrix organization, a purely needs
projectized organization or a purely Respect&
functional organization. Engagements
Determining the organizational
structure will create the path to
success for a PMO.
As a program management office, people responsibilities are directly linked to the
Enterprise structure. Is it a highly matrixed organization, a weak matrix organization, a
purely projectizedorganization or a purely functional organization.
The people aspect of the PMO will be address differently based on the organizational
structure, so please make sure you understand the structure clearly.
Embrace: Knowledge workersthese are individuals who are experts in their field. They are
better utilized short term for their knowledge and skill for only the segment of the program
or project that is needed. They can be better utilized functionally across the organization
depending on the Program Type. (Product Management requires experts).
Avoid: Too many knowledge workers because they are specific and not broad in
knowledge. Additionally, they are expensive.
Embrace: Project workers these are individuals who are specifically trained in project and
program management. Theyare better utilized if reporting to a PMO rather than a function
because they can be shared among projects and programs. Project workers have skill that
is transferrable across functions which allows optimal utilization.
Avoid: Overloading the Project worker until they become ineffective. Also avoid having
them wear the hat of project worker and knowledge worker.
Embrace: Education andmaking all participants of the program/project aware of the
nuances being managed. This can include educating the project team or educating the
functional teams. Project Managers are not accidental: they are grown in an environment
that trains, mentors and rewards them based on performance in projects.2
Avoid: Mismatching workers to the projects or programs; forexample, putting a senior PM
on a short term entry level project. Obtain the best utilization of your work force by
aligning skills sets to level of complexity
Embrace: Protocol for engagements so that mutual respect is present.
Avoid: Creating scenarios where project workers are not in the correct role and expected
to work in areas that are not governed by the PMO.
The right people doing the right work at the right time equals money well spent and saved.
Sherry S. Remington, PMP, SCPM 11/6/2011
4. 3
Process and the PMO
Process adds clarity,
standardization, improvement and Enterprise
value to an Enterprises’ culture. process
Without process chaos ensues. Program &
Oftentimes chaos is misrepresented Project process
for innovation. In reality, process
Engagement
fuels effective and efficient process
innovation and provides value
through the long term. Depending
on regulatory practices which are
mandatory, some Enterprises
exercise better processes than
others.
We know that all Enterprises have processes and within the Enterprise some functions
adhere to the processes better than others. Not all processes or Enterprises are equal.
Enterprise processes can be defined as requests, patterns, re-use of capabilities, creating
new capabilities, regulations, adoption and measurement. Enterprise processes are
created for all organizations and functions to follow; not all do. Depending on the type of
PMO, maintaining processes and methodologies could be a responsibility of the PMO.
Determine upfront how that responsibility will bring value to the Enterprise.
Embrace: Enterprise process and promote them throughout the company. It will create a
common taxonomy and simplify and clarify communications.
Embrace: Industry standards and processes (PMI PMBOK, PLC, Agile). As a PMO the need
to drive consistency and industry standards is tantamount. If the PMO does not hold up the
standards the organizations following them will not either. This often times creates chaos
and undermines the value of the PMO. It also feeds a passive / aggressive culture.
Avoid: Playing police for other organizations unless that is the PMO charter to do so.
Remember the type of PMO and it’s purpose and adhere to the PMO strategy and execution
to meet the desired outcomes for the PMO.
Embrace: Creating an engagement process if one is not already in place. There may be
exceptions to this idea; however without an engagement process; discipline and
prioritization will be diminished. Fire, Ready, Aim is an engagement process, but is it right
for your Enterprise?
Avoid: Ad hoc requests without an approval process or engagement process in place.
Creating standardization and repetitive processes creates efficiencies which allow focus on
new or strategic efforts optimizing the portfolio for the Enterprise.
Sherry S. Remington, PMP, SCPM 11/6/2011
5. 4
Systems and the PMO
What is a system? A whole
compounded of several parts or Financial systems
members. Systems have Political systems –
interconnectivityrelationships CLM
among each other. The term system Infrastructure
may also refer to a set of rules that systems
governs structure and/or behavior.
We will take a brief look at 5 Culture systems
systems and what the PMO can
embrace or avoid.
Financial Systems are primary to any PMO. The PMO leadership must understand how the
Enterprise will pay for its services.
Embrace: a financial system which gives budget and control over the PMO funds for the
PMO specifically and the projects and programs preferably.
Avoid: a financial system which does not directly support programs or projects, avoid tin
cupping, it breeds political disparity.
Political Systems indicate the structure by which decisions are made and power is exerted.
The organizational structure and placement of the PMO can impact its ability to execute
effectively.
Embrace: buy in from all stakeholders with an appropriate stakeholder management
process. Utilize cross-functional steering committees and always have an executive sponsor
to assist with political situations.
Avoid: Career Limiting Moves, passive aggressive behavior. Identify and manage
stakeholders with these tendencies utilizing good risk management and escalation
processes.
Infrastructure Systems are the systems or tools used by the Enterprise. Be aware of how
the PMO can use them; as well as the impact they may have on the PMO. These systems can
be enabling or punitive; integrated or antiquated and depending on which you encounter,
the infrastructure can impede PMO success.
Embrace: Knowledge of the infrastructure the PMO will be utilizing. Opt for infrastructure
which will allow the PMO consistent, effective and valid data gathering.
Avoid: multiple systems when processes are the same. Avoid redundant data systems.
Culture Systems directly influence the PMO and the how it executes strategy.5 Cultural
scrutiny, awareness and understanding are king.4
Embrace:the Enterprise culture and understand how to get work done within it.
Avoid: programs and projects that change the culture without executive support or
awareness.
In doing so, the PMO will bring in more projects on time, under budget which meet
stakeholder requirements.
Sherry S. Remington, PMP, SCPM 11/6/2011
6. 5
Data and the PMO
The term data refers to qualitative PMO data
or quantitative attributes of a
variable or set of variables. Data Horizon and value
are often viewed as the lowest metrics
level of abstraction from which Risk Data
information and then knowledge
are derived. Why is data
important? It helps to orchestrate
business decisions. Decisions
which will determine the
Company’s success or failure? This
is important to the PMO as it
exports data to diverse audiences.
PMO data: What data is important to the PMO and what data should be owned and driven
by the PMO? These are important questions and need to be determined prior to presenting
data. When data surfaces that is disparate, which data will be used for decision making?
Single source of Truth data (SSOT) must be identified and validated by the Executive
Sponsor as the information that decisions will be predicated.
Embrace: Single source of truth data. Require ownership of data regardless of where it is
created or resides.
Avoid: disparate data without sponsorship
Horizon and Value metrics:What data should the PMO own? – Execution data, Business
Value Data, Forecast Data?What data can the PMO borrow?-Marketing Analysis, Sales
statistics.
Embrace: Data which trends historically but is tantamount to predict the future. Create a
framework to review the data on a periodic basis.
Avoid: Boring and repetitive data that does not add value to decision making. Change to
program without new data metrics to identify change success.
Risk analysis and contingency information is the safety net for PMO’s. A risk management
plan (RMP) with contingency built in is best practice execution. As a part of the RMP,
identify data, track it to validate or discredit the risk realization.
Embrace: a risk management plan
Avoid: incorrect risk data, lack of risk management plan
With risk information being reviewed regularly, decisions can be made quicker to avoid
losses or seize opportunities. This adds real dollar value to the bottom line.
Sherry S. Remington, PMP, SCPM 11/6/2011
7. 6
REFERENCES:
The PMOSIG Program Management Office
1 Handbook: Strategic and Tactical Insights
for Improving Results Authors:
Section 1: PMO Governance Dennis Bolles,
1. The PMO Role in Project Craig J. Letavec
Portfolio Governance
2. Program Types:
Categorization and Its
Benefits
3. The PMO as an Enabler for
Large-Scale Global Program
Success
The Strategic Project Office: A Guide to
2 Improving Organizational Performance
Improving Results Authors:
1. The Project Office Concept J. Kent Crawford
2. The Starting Gate
3. Project Office Rationale, PM Solutions
Research
Organization Structure and
Functions
4. Meet the Players
5. Project Office Planning,
Preparation and Strategy
6. Establishing a Project
Management Methodology
7. Knowledge Management
and the Project Office
8. The Technical Infrastructure
9. The Strategic Project Office
10. Changing the Organizational
Structure
Sherry S. Remington, PMP, SCPM 11/6/2011